Rate hike focus Financial markets are now pricing in four US Federal Reserve interest rate hikes this year to at least 1.25% for the fed funds rate, including a quarter of the market expecting the first increase on March 16 to be a 50 basis point move. They are also now pricing in two more increases this year from the European Central Bank, albeit to the much lower level of almost 0% in its main policy rate, up from a negative rate now. The market focus this week is on US CPI inflation figures due on Friday morning NZT, which are expected to show annual inflation rose to a 40-year high of 7.3% in January. The closely-watched 10-year US Treasury yield rose four basis points to a post-covid high of 1.96% overnight and the German 10 year bund nudged up to a three-year high of 0.26%.

Thiel leaves Facebook Peter Thiel, the NZ citizen and US tech billionaire, has announced he will step down as a Facebook director after 17 years on the board. He was one of the social network’s earliest investors. It has been reported he stepped down to spend more time donating some of his billions to back pro-Trump candidates in this November’s mid-term elections.

Nvidia/Arm deal collapses Mobile and gaming device chip designers Nvidia and ARM called off their US$40b merger overnight in the face of intense opposition from anti-monopoly regulators fearing the merged group could dominate a key part of the global phone and gaming markets. ARM’s owner Softbank said it planned to float ARM instead. 

Oil (profit) boom BP reported a net profit of US$12.1 billion for 2021, its highest in eight years, as it took advantage of oil and gas prices headed towards seven-year highs. Its December quarter profit of US$4.1b was above analyst forecasts. (Reuters)

Peleton reset Peleton announced overnight it is replacing its CEO and sacking 2,800 workers, including 20% of its executives, after a slump in sales because locked-up users of the firm's stationary bicycles went back to work. The CEO admitted the company expanded too fast in the wake of a boom of sales during the first lockdowns in 2020. The ‘reset’ has reduced chances that either Amazon, Nike or Apple might buy Peleton. (CNN)

Pfizer disappoints Pfizer forecast higher revenues of about US$100b in 2022 overnight on sales of its covid vaccines and anti-covid treatment pills, but its shares fell about 6% after its revenues in the fourth quarter were below expectations. (CNBC)

Fresh on BusinessDesk this morning

David Chaplin writes his weekly column about an ASIC warning about ‘pump and dump’ attacks coordinated on social media.

Michael Andrew reports on the growing workload for employment lawyers amid all the changes post-covid